Solana being a blockchain network was launched in 2020 is considered by many as competitor to Ethereum and such a cryptocurrency has raised to around 16000% with start of January. With the wake of this year, the cost of single SOL is $1.51 (around ₹112 and the market cap of Solana reached around $86 million (around ₹639 Crores). Present trading is about $241 (around ₹17900) and earned market capitalisation of around $73 billion which means ₹54 lakh crores as per to CoinMarketCap. Which means huge investments are made by people in newer cryptocurrency which has taken sixth place as per market capitalisation.
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Things To Know For Making Investments In Solana
• It’s growth of Solana had shown an instant rise this year. The rise of 16000% was remarkable and was there on the top cryptocurrency exchanges and apps.
• Speed of Solana is rigorous as it has become the fastest growing cryptocurrency on the block, which processes about 50,000 transactions per second (TPS), which is more than Ethereum as it processes transactions between 15 and 45 TPS as per current data.
• Solana is most of known as “Ethereum Killer” (ETH) and this became one of the major reason of increase in price of Solana as people were inclined towards getting alternate to Ethereum, being the second largest cryptocurrency in world had congested network. Where as Ethereum, Solana too was indulged in providing smart contracts.
• As discussed earlier, (POW) Proof-Of-Work validation model is used by Bitcoin, whereas few of them use proof-of- stake, where Solana is into using proof-of-history model. It so uses this type of model for integrating time stamps in its proof of history validation model. This is the reason behind the fastest processing of transactions by Solana.
• The basic reason behind the war between Ethereum and its competitors is the number of projects which are running on each network. On the other hand Ethereum is having first mover advantage, while its competitors including Solana are moving with the pace. In total, Solana is having around 350 projects in its ecosystem.
Rise In Solana
No doubt Solana increased intrinsically this year, but the investments with cryptocurrency are still volatile. It is having risk of coming down quickly, where it is shooting up at high rate. To this, financial experts suggest every investor for not availing exposure to cryptocurrency of higher than 5-10 percent of entire portfolio. Therefore, one should stay careful before investing in any coin, considering both pros and cons behind the rise of a coin.
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